NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Retreats As Tesla Dives 5.3%

SP500

SP500 pulls back as traders react to PPI reports. PPI increased by 0.2% month-over-month in October, in line with analyst estimates. Core PPI grew by 0.3%, compared to analyst forecast of 0.3%. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 217,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 223,000. Utilities and defensive stocks have been among the biggest gainers in the SP500 index today, which shows that traders have started to search for safe-haven assets. Most likely, the current pullback is driven by profit-taking after the strong rally.

If SP500 stays below the support at 5980 – 5990, it will head towards the 50 MA at 5940. A move below the 50 MA will push SP500 towards the next support level, which is located in the 5880 – 5890 range.

NASDAQ

NASDAQ moved lower as Tesla  declined by 5.3%. The stock found itself under pressure amid reports indicating that Trump planned to nix EV tax credit. Super Micro Computer was the biggest loser in the NASDAQ index today. The stock was down by 11.1% as traders worried that it could be delisted after the company delayed the filing of its third-quarter financial report.

In case NASDAQ manages to settle below the 20,100 level, it will head towards the nearest support at 20,700 – 20,800.

Dow Jones

Dow Jones is under pressure amid broad pullback in the equity markets. It should be noted that Disney, which is up by 6.4%, managed to gain strong momentum today. The stock tested multi-month highs as traders reacted to the better-than-expected earnings report.

If Dow Jones settles below the support at 43,800 – 43,900, it will head towards the 50 MA at 43,553. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

For a look at all of today’s economic events, check out our economic calendar.